The lead candidate of GW Pharmaceuticals PLC- ADR (NASDAQ: GWPH), Epidiolex, has yielded positive results in three Phase III studies in two severe orphan epilepsies.

“We anticipate a solid launch trajectory,” Goldman Sachs’ Salveen Richter said in a report. He initiated coverage of the company with a Buy rating and a price target of $189.

GW Pharma is focused on cannabis-based therapies in central nervous system disorders. The company’s lead asset Epidiolex for Dravet Syndrome [DS] and Lennox-Gastaut Syndrome [LGS] is now de-risked with positive data from three Phase 11 studies.

“We anticipate a solid launch trajectory (>1K US patient bolus) with widespread off-label use in nonDS/LGS epilepsies – we model $1.6bn in WW sales, of which 51% is derived from US pediatric off-label use (assumes sales cliff in 2026 and 2028),” analyst Richter wrote.

Initiation of CBDV Phase II study in autism spectrum disorders in the first half of 2017

Epidiolex Phase III dose-ranging Dravet study data in 2017

Epidiolex Phase III data in tuberous sclerosis complex in the back half of 2017

“Per KOL feedback, there is substantial interest from the medical community and patients for Epidiolex in all treatment-resistant epilepsies (TREs) in pediatric and adult populations,” the analyst noted.

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